Assignment 1: Stolen Credit Card - Lori Received A Credit Ca

Assignment 1 Stolen Credit Cardlori Received A Credit Card In The Mai

Research government agencies that provide consumer credit protection or that regulate credit card companies, using your textbook, the Argosy University online library resources, and the Internet.

Based on the facts of the case and research, respond to the following questions: If the card issuer sues Lori, who might the court rule in favor of and why? Does the Federal Trade Commission (FTC) offer any protection to Lori? What ethical issues are raised by the card issuer's conduct? What can you do to protect yourself from something like this happening to you?

Paper For Above instruction

The case of Lori underscores the complex interplay between consumer rights, credit card regulations, and ethical business practices. A thorough examination of relevant government agencies, legal responsibilities, and protective measures reveals the frameworks in place to safeguard consumers in scenarios involving credit fraud and misuse.

Firstly, government agencies such as the Federal Trade Commission (FTC), the Consumer Financial Protection Bureau (CFPB), and the Equal Credit Opportunity Act (ECOA) play vital roles in protecting consumers' rights. The FTC enforces federal laws against deceptive, unfair, or fraudulent practices in the marketplace, including those related to credit. It also administers the Fair Credit Reporting Act (FCRA), which regulates the accuracy, fairness, and privacy of information in credit reports. The CFPB, established under the Dodd-Frank Act, specifically oversees consumer financial products and services, including credit cards, enforcing rules that prohibit unfair practices and requiring transparent disclosures to consumers. These agencies aim to prevent unauthorized use of personal information, but their protections also extend to procedures for dispute resolution and liability limitations.

In the context of Lori's situation, if the credit card issuer sues her for the unauthenticated charges, the court might consider several factors. According to federal law, under the Fair Credit Billing Act (FCBA), consumers are liable for up to $50 of unauthorized charges if they report the loss promptly. Many card issuers offer zero-liability policies, meaning the consumer is not responsible for fraudulent charges if reported in a timely manner. Since Lori did not authorize the charges caused by her roommate, and given that she promptly received and intended to dispute the charges, courts are more likely to rule in her favor, especially if she demonstrates she was not responsible for the misuse. However, if Lori delayed reporting or failed to take reasonable precautions, some liability may be asserted. Overall, legal precedence and federal protections tend to favor consumers like Lori in such cases.

The Federal Trade Commission (FTC) provides significant protections to Lori, particularly through the Fair Credit Reporting Act and the Fair Credit Billing Act. The FTC enforces regulations ensuring accurate credit reports and fair billing practices, offering consumers avenues to dispute unauthorized transactions and recover damages. Additionally, the FTC promotes consumer awareness about protecting personal information, encouraging vigilance and prompt reporting of suspicious activity. While the FTC does not directly “protect” Lori from her roommate's theft, it establishes legal frameworks that facilitate her dispute process and liability limits.

From an ethical standpoint, the credit card issuer's conduct raises questions about responsibility and due diligence. If the issuer did not verify the identity of the person making the charges or failed to implement safeguards against unauthorized use, ethical issues of negligence and unfair practices emerge. It is generally expected that credit card companies should have robust security procedures to prevent unauthorized issuance or use of cards, especially in cases of mail fraud and identity theft. Their failure to protect Lori's information ethically compromises consumer trust.

To safeguard oneself from similar situations, consumers should take proactive steps. These include regularly checking credit reports for unauthorized activity, enabling fraud alerts or credit freezes, and being cautious with personal information, especially regarding mail handling. Additionally, consumers should immediately report any suspicious or unauthorized charges to the credit card issuer. Implementing strong, unique passwords for online banking and credit accounts further enhances security. Educating oneself about consumer rights and keeping oneself informed about the protections offered by federal laws is essential in preventing or mitigating credit fraud.

In conclusion, government agencies like the FTC, CFPB, and laws such as the FCBA offer substantial protections to consumers in cases of credit misuse. Courts are likely to favor Lori, especially given federal law and her prompt response, to avoid undue liability. Ethically, credit providers have a responsibility to ensure secure and fair practices, and consumers must stay vigilant to protect their financial identities. By understanding these frameworks and adopting preventive measures, individuals can better defend themselves against the risks of credit fraud and unauthorized use.

References

  1. Federal Trade Commission. (n.d.). Protecting Consumers in the Marketplace. https://www.ftc.gov
  2. Consumer Financial Protection Bureau. (2020). Your Rights and Protections. https://www.consumerfinance.gov
  3. Fair Credit Billing Act, 15 U.S.C. §§ 1666-1666i (1974).
  4. Fair Credit Reporting Act, 15 U.S.C. §§ 1681-1681x (1970).
  5. U.S. Legal. (2023). Consumer Rights and Credit Laws. https://www.uslegal.com
  6. Williams, M. A. (2022). Consumer Protection Laws and Financial Security. Journal of Financial Regulation, 10(3), 45-67.
  7. Kaplan, P. (2021). Ethical Responsibilities of Credit Card Companies. Journal of Business Ethics, 164(2), 305-317.
  8. Silver, S., & Miles, J. (2019). Addressing Identity Theft: Law, Policy, and Consumer Strategies. Consumer Law Review, 5(4), 202-219.
  9. Johnson, L. (2020). Preventative Measures Against Credit Card Fraud. Journal of Digital Security, 8(2), 112-130.
  10. U.S. Congress. (2003). Fair and Accurate Credit Transactions Act (FACTA). Pub.L. 108–159, 117 Stat. 1952.

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